For A Covid: Vaccination Free World

vaccination
for a covid
free world
HALF YEARLY REPORT

DECEMBER 2021
B HALF YEARLY REPORT
2 Company Information
3 Directors’ Review Report
5 Directors’ Review Report (Urdu)
7 Independent Auditor’s Review Report
8 Unconsolidated Condensed Interim Statement of

Financial Position
9 Unconsolidated Statement of Profit or Loss and

Other Comprehensive Income
10
Contents
Unconsolidated Condensed Interim Statement of

Changes In Equity
11 Unconsolidated Condensed Interim Statement of

Cash Flows
12 Selected Notes to the Unconsolidated

Condensed Interim Financial Statements
27 Consolidated Condensed Interim Financial

Statements
DECEMBER 2021 01
Company Information
Board of Directors
Mr. Adnan Asdar Ali Chairman Bankers
Mr. S. Nadeem Ahmed Chief Executive Officer Albaraka Bank (Pakistan) Limited
Mr. Zubair Razzak Palwala Askari Bank Limited
Mr. Munis Abdullah Bank Al Habib Limited
Dr. Atta Ur Rahman Bank Alfalah Limited
Mrs. Shaista Khaliq Rehman Bank of Punjab
Mr. Mufti Zia Ul Islam Dubai Islamic Bank Pakistan Limited
Faysal Bank Limited
Habib Bank Limited
Committees of the Board Habib Metropolitan Bank Limited
MCB Bank Limited
Audit Committee Meezan Bank Limited
Mrs. Shaista Khaliq Rehman Chairperson National Bank of Pakistan
Mr. Adnan Asdar Ali Member Soneri Bank Limited
Dr. Atta Ur Rahman Member Standard Chartered Bank (Pakistan) Limited
Summit Bank Limited
Human Resource &
Remuneration Committee Registered Office
Mrs. Shaista Khaliq Rehman Chairperson One IBL Centre, 2nd Floor, Plot # 1
Mr. Adnan Asdar Ali Member Block 7 & 8, D.M.C.H.S, Tipu Sultan Road
Dr. Atta Ur Rahman Member Off Shahra-e-Faisal, Karachi
Tel:+92 21 37170200 - 01
Chief Financial Officer
Mr. Mobeen Alam Share Registrar
CDC Share Registrar Services Limited
Company Secretary Head Office, CDC House, 99-B, Block ‘B’
Mr. Zubair Razzak Palwala S.M.C.H.S., Main Shahrah-e-Faisal
Karachi - 74400
Auditors
A. F. Ferguson & Co.
Legal Advisors
Mohsin Tayebaly & Co.
02 HALF YEARLY REPORT

Directors’ Review Report
We are pleased to present the unconsolidated interim financial information of the company for
the half year ended December 31, 2021. These financial statements have been prepared in
accordance with the requirements of the International Accounting Standard (IAS) 34 – ‘Interim
Financial Reporting’. The directors’ report is prepared in accordance with section 227 of the
Companies Act, 2017 and Chapter XII of the Listed Companies (Code of Corporate Governance)
Regulations, 2019
Financial highlights
Sales for the half year increased by 6% over the same period last year. Gross profit margin of
Company was maintained at 51% during the same period last year.
Due to pandemic last year, operating expenses during same period were as low as 30% of the
sales however, this year operating expense are 32% of sales.
Following is the summary of financial results for the half year ended December 31, 2021:
2021 2020
(Rupees in thousand)
Revenue 8,632,469 8,153,129
Cost of sales (4,239,046) (3,987,308)
Gross Profit 4,393,423 4,165,821
Operating expenses (2,779,607) (2,483,552)
Other operating expenses (82,314) (128,598)
Other income 787,300 799,469
Profit from operations 2,318,802 2,353,140
Finance cost (821,831) (577,309)
Profit before tax 1,496,971 1,775,831
Income tax expense (225,975) (330,073)
Profit after taxation 1,270,996 1,445,758
EARNINGS PER SHARE
Basic earnings per share after taxation for the period was Rs. 4.07 (2020: Rs. 4.63). There is
no dilution effect on the basic earnings per share of the Company, as the Company had no
convertible dilutive potential ordinary shares outstanding as at December 31, 2021.
FUTURE OUTLOOK

Searle has a firm commitment to grow and increase its market share among its competitors
and maintain its organic and in-organic growth despite of challenges of a turbulent regulatory
environment and volatile economic scenario due to the pandemic. This commitment of Searle is
reflected in the acquisition of OBS Pharma (now Searle Pakistan Limited). Searle is also focusing
on its product demand in international market due to increased healthcare spending trend after
COVID-19 which is expected to translate into greater revenues for the industry.
DECEMBER 2021 03
At Searle, we are all highly motivated and willing to contribute enthusiastically for the progress
of the Company. Same is the case with our partners, suppliers and customers, for which we
are thankful and expect the same zeal and zest for future contribution. We assure Searle will
continue to work hard to provide long term sustainable growth to everyone associated with us.
For and on behalf of the Board

Syed Nadeem Ahmed Zubair Razzak Palwala
Chief Executive Officer Director
Karachi: February 28, 2022

‫ڈارئرٹکیزیکربممانےئلیکروپرٹ‬
‫سمرت‬ ‫مہ ‪ 31‬دربمس ‪ 2021‬وک متخ وہےن واےل امششیہ دمت ےک ےیل ینپمک یک ریغ اامتشیل وبعری امایلیت ولعمامت شیپ رکےت وہےئ ّ‬
‫وسحمس رکرےہ ںیہ۔ ہی امایلیت ایبانت نیب االوقایم ااکؤگنٹن اڈنیٹسرڈ (‪’ - 34 )IAS‬وبعری انفلشن روپرگنٹ‘ یک رضورایت ےک‬
‫ٹ�‬
‫اطمقب ایتر ےیک ےئگ ںیہ۔ ڈارئرٹکیز روپرٹ زینپمک اٹکی ‪ 2017‬یک دہعف ‪ 227‬اور لس� ڈ� وینپمکں (اکروپرٹی وگرسنن ےک اضہطب ) یک‬
‫ش ن�‬
‫روگیل�ی�� ز�‪2019‬ےکابب‪XII‬ےکاطمقبایتریکیئگےہ۔‬
‫امایلیتایکلھجں‬
‫رفوتخ ںیم زگہتش اسل امششیہ یک ایس دمت ےک اقمےلب ںیم ‪ 6‬دصیف ااضہف وہا۔ ٓاپ یک ینپمک اک ومجمیع انمعف اک امرنج زگہتش اسہل‬
‫ایسدمتےکدوران‪51‬دصیفرپربرقارراہ۔‬
‫ےلھچپ اسل اعیمل وابء یک وہج ےس‪ ،‬ایس رعےص ےک دوران آرپگنٹی ارخااجت رفوتخ ےک ابتبسن ںیم ‪ 30‬دصیف کت مک ےھت اتمہ‪ ،‬اس‬
‫اسلآرپگنٹیارخااجترفوتخاک‪32‬دصیفںیہ۔‬
‫‪31‬دربمس‪2021‬وکمتخوہےنواےلامششیہےکامیلاتنجئاکالخہصدنمرہجذلیےہ‪:‬‬
‫‪2020‬‬ ‫‪2021‬‬
‫م)‬‫(اپاتسکین روےپ زہاروں ی‬
‫‪8,153,129‬‬ ‫‪8,632,469‬‬ ‫ٓادمین‬
‫)‪(3,987,308‬‬ ‫)‪(4,239,046‬‬ ‫رفوتخےکارخااجت‬
‫‪4,165,821‬‬ ‫‪4,393,423‬‬ ‫ومجمیعٓادمین‬
‫)‪(2,483,552‬‬ ‫)‪(2,779,607‬‬ ‫ٓارپگنٹیارخااجت‬
‫)‪(128,598‬‬ ‫)‪(82,314‬‬ ‫درگیٓارپگنٹیارخااجت‬
‫‪799,469‬‬ ‫‪787,300‬‬ ‫درگیٓادمین‬
‫‪2,353,140‬‬ ‫‪2,318,802‬‬ ‫ٓارپزنشیےسٓادمین‬
‫)‪(577,309‬‬ ‫)‪(821,831‬‬ ‫امایلیتارخااجت‬
‫‪1,775,831‬‬ ‫‪1,496,971‬‬ ‫انمعفلبقازسکیٹ‬
‫)‪(330,073‬‬ ‫)‪(225,975‬‬ ‫امکنسکیٹارخااجت‬
‫‪1,445,758‬‬ ‫‪1,270,996‬‬ ‫انمعفدعبازسکیٹ‬
‫یفرئیشٓادمین‬
‫اس دمت ےک ےیل اینبدی ٓادمین یف رئیش دعب از سکیٹ روےپ‪4.07‬ریہ (‪ 4.63 :2020‬روےپ)۔ ینپمک یک اینبدی آدمین یف رئیش رپ یمک‬
‫ےکوکیئارثاتںیہنوہےئ‪،‬وچہکن‪31‬دربمس‪2021،‬کتینپمکےکدبتلیذپریریغوتمعقہنکممصصحاقبایںیہنےھت۔‬
‫‪DECEMBER 2021‬‬ ‫‪05‬‬

‫لبقتسمرپاکیرظن‬
‫رسلاےنپرحفیاداروںےکدرایمناےنپامرٹیکرئیشزوکڑباھےناورزایدہرکےنےکرُپزعمےہ اور ًاتبسنرپاشیننکروگیرٹیلی‬
‫اموحلاوراعیملوابءیکوہجےسریغمکحتسماعمیشوصراحتلےکزجنلیچےکابووجداےنپانایمیتاورریغانایمیتوشنامنوکربرقاررےھکوہےئ‬
‫ےہ۔ رسل ےک اس زعم یک اکعیس او یب اسی افرام (وموجدہ رسل اپاتسکن ڈٹیمل) ےک وصحل ےس وہیت ےہ۔ اتمہ‪ ،‬نیب االوقایم ڈنمی‬
‫ںیم اینپ رپوڈٹک ڈامیڈن رپ وتہج رموکز رکےن ےک اسھت ‪ COVID-19 ،‬ےک دعب ڑبیتھ وہیئ ھتلیہ رئیک اور ڑبےتھ وہےئ راحجن یک‬
‫دبوتلسجےسوتعقےہہکاڈنرٹسییکٓادمینںیمڑبےامیپےنرپااضہفوہاگ۔‬
‫ل� ئ‬
‫رسل ںیم مہ بس ااہتنیئ د جم�ی ےس اور لقتسم اینبدوں رپ وجش و رخوش ےس اےنپ ہصح ڈاےنل ےک ےئل ایتر ںیہ۔ ایس رطح امہرے‬
‫رشاتکدار‪،‬الپسرئزاوراصرنیفیھبیسذجےباکااہظررکےتںیہ‪،‬سجےکےئلمہرکشزگارںیہاورٓادنئہےکاعتونےکےئلایس‬
‫وجش و ذجےب یک وتعق رکےت ںیہ۔ مہ نیقی داہین رکاےت ںیہ ہک‪ ،‬رسل اےنپ ےس واہتسب رہ رفد وک وطلی دمیت اور اپدیئار رتیق یک رفایمہ‬
‫ےکےئلتخسدجودہجاورنگلےسوکاشںرںیہےگ۔‬
‫رباےئاوروبرڈیکاجبنےس‬
‫ ‬
‫زریبرزاقاپلواال‬ ‫ ‬ ‫دیسدنمیادمح‬
‫ڈارئرٹکی‬ ‫ ‬‫فیچازگیوٹکیٓارسیف‬
‫رکایچ‪ :‬رفوری‪2022 ،28‬ء‬
‫‪06‬‬ ‫‪HALF YEARLY REPORT‬‬

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DECEMBER 2021 07
UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF
FINANCIAL POSITION
As at December, 2021
(Un-audited) (Audited)
December 31, June 30,
2021 2021
ASSETS Note (Rupees in ‘000)
Non-current assets
Property, plant and equipment 5 5,621,095 5,577,984
Right-of-use asset 6 74,580 79,410
Investment properties - at cost 2,604,663 2,490,049
Intangible assets 73,937 94,214
Long-term investments - subsidiaries 7 18,036,311 17,436,311
Long-term loans 182 325
Long-term deposits 7,396 7,396
26,418,164 25,685,689
Current assets
Inventories 2,654,851 2,206,898
Trade receivables 8 9,782,497 8,754,968
Loans and advances 9 1,391,806 1,335,832
Trade deposits and short-term prepayments 127,717 105,351
Other receivables 10 5,822,320 4,762,598
Short-term investment - at amortised cost 100,000 100,000
Taxation - payments less provision 862,315 870,507
Cash and bank balances 132,593 103,680
20,374,099 18,239,834
Total assets 47,292,263 43,925,523
EQUITY AND LIABILITIES
EQUITY
Issued, subscribed and paid-up capital 11 3,120,526 2,400,405

Share premium 5,329,298 6,049,419
General reserve 280,251 280,251
Unappropriated profit 13,852,297 13,006,363
Revaluation surplus on property, plant and equipment 2,696,195 2,751,216
25,278,567 24,487,654
LIABILITIES
Non-current liabilities
Deferred tax liabilities 173,530 215,275
Employee benefit obligations 48,726 53,484
Long-term borrowings 12 9,041,097 9,650,485
Deferred income - Government grant - 8,571
Lease liability 89,686 93,092
9,353,039 10,020,907
Current liabilities
Trade and other payables 13 4,070,272 3,213,872

Short-term borrowings 14 8,321,857 5,988,610
Unpaid dividend 15 220,438 163,596
Unclaimed dividend 41,756 42,269
Current portion of lease liability 4,766 4,416
Sales tax payable 1,568 4,199
12,660,657 9,416,962
Total liabilities 22,013,696 19,437,869
Contingencies and commitments 16
Total equity and liabilities 47,292,263 43,925,523
The annexed notes from 1 to 26 form an integral part of these unconsolidated condensed interim financial
statements.
Chief Executive Officer Director Chief Financial Officer

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF PROFIT OR
LOSS AND OTHER COMPREHENSIVE INCOME
For the Half Year ended December 31, 2021 - Unaudited
Quarter ended Half year ended

December 31, December 31, December 31, December 31,
2021 2020 2021 2020
Note --------------------------(Rupees in ‘000)-------------------------
Revenue from contracts with

customers 17 3,970,162 4,084,269 8,632,469 8,153,129
Cost of sales 18 (1,931,150) (1,929,897) (4,239,046) (3,987,308)
Gross profit 2,039,012 2,154,372 4,393,423 4,165,821
Distribution costs (1,131,263) (1,063,013) (2,237,296) (1,878,669)
Administrative expenses (270,963) (315,740) (542,311) (604,883)
Other expenses (31,076) (67,453) (82,314) (128,598)
Other income 20 700,519 615,902 787,300 799,469
Profit from operations 1,306,229 1,324,068 2,318,802 2,353,140
Finance cost (443,517) (324,920) (821,831) (577,309)
Profit before income tax 862,712 999,148 1,496,971 1,775,831
Income tax expense (58,785) (145,450) (225,975) (330,073)
Profit for the period 803,927 853,698 1,270,996 1,445,758
Other comprehensive income - - - -
Total comprehensive income 803,927 853,698 1,270,996 1,445,758
(Restated) (Restated)
Basic and diluted earnings
per share (Rupees) 21 2.58 2.74 4.07 4.63
statements.
DECEMBER 2021 09
UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF CHANGES
IN EQUITY
Capital reserve Revenue reserves

Advance
Issued, Reval-
received
sub- uation
against Unappro- Total
scribed Share surplus on General Total
issue of priated reserves
and paid premium Property, reserve
share profit
up capital plant &
capital
equipment
----------------------------------------------------- Rupees ‘000 ----------------------------------------------------
Balance as at July 01, 2020 2,124,253 - 1,630,974 1,446,517 280,251 11,388,823 14,746,565 16,870,818
Total comprehensive income for

the period - - - - - 1,445,758 1,445,758 1,445,758
Transactions with owners
Final dividend for the year ended

June 30, 2020 @ Rs. 2.5
per share - - - - - (531,063) (531,063) (531,063)
Advance received against issue

of share capital - 4,364,474 - - - - - 4,364,474
Issuance cost against rights issue - - - - - (25,060) - (25,060)
Transfer of incremental
depreciation for the period (net
of deferred tax) - - - (25,802) - 25,802 - -
Balance as at December 31, 2020 2,124,253 4,364,474 1,630,974 1,420,715 280,251 12,304,260 15,661,260 22,124,927
Balance as at July 01, 2021 2,400,405 - 6,049,419 2,751,216 280,251 13,006,363 22,087,249 24,487,654

- - - - - 1,270,996 1,270,996 1,270,996
the period

June 30, 2021 @ Rs. 2 per
share - - - - - (480,083) (480,083) (480,083)
Issue of bonus shares 720,121 - (720,121) - - - (720,121) -
depreciation for the period (net
of deferred tax) - - - (55,021) - 55,021 - -
Balance as at December 31,

2021 3,120,526 - 5,329,298 2,696,195 280,251 13,852,297 22,158,041 25,278,567
The annexed notes from 1 to 26 form an integral part of these unconsolidated condensed interim financial statements.

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF
CASH FLOWS
December 31, December 31,
2021 2020
Note (Rupees in ‘000)
CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from operations 22 806,207 2,597,753

Retirement benefit obligations paid (7,458) (2,119)
Finance cost paid (792,021) (504,220)
Income tax paid (259,528) (356,787)
Decrease in long-term loans 143 104
Net cash generated (used in) / from operating activities (252,657) 1,734,731
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment (228,025) (365,258)

Proceeds from disposal of property, plant and equipment 2,446 -
Addition to investment properties (149,462) (22,298)
Investment / Acquisition in subsidiary (600,000) (15,800,000)
Net cash used in investing activities (975,041) (16,187,556)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividend paid (423,754) (157,715)

Proceeds from export finance - net - 216,500
(Decrease) / increase in long-term borrowings (133,876) 10,969,619
Repayment of demand finance (113,333) -
Payment against lease liabilities (10,796) (13,108)
Advance received against issue of share capital
net of issuance cost - 4,339,414
Net cash generated (used in) / from financing activities (681,759) 15,354,710
Net (decrease) / increase in cash and cash equivalents (1,909,457) 901,885
Cash and cash equivalents at the beginning of the period (5,346,410) (4,341,147)
Cash and cash equivalents at the end of the period 23 (7,255,867) (3,439,262)
(7,255,867) (3,439,262)
statements.
DECEMBER 2021 11
NOTES TO THE UNCONSOLIDATED CONDENSED INTERIM
FINANCIAL STATEMENTS
1. THE COMPANY AND ITS OPERATIONS
1.1 The Searle Company Limited (the Company) was incorporated in Pakistan as a private
limited company in October 1965. In November 1993, the Company was converted
into a public limited company under the repealed Companies Ordinance, 1984 (now
Companies Act, 2017). Its shares are quoted on the Pakistan Stock Exchange Limited
(PSX). The Company is principally engaged in the manufacture of pharmaceutical and
other consumer products. The registered office of the Company is situated at One IBL
Centre 2nd Floor, Plot No. 1, Block 7 & 8 Dehli Mercantile Muslim Cooperative Housing
Society, Tipu Sultan Road Off Shahrah-e-Faisal, Karachi.
International Brands (Private) Limited is the Parent Company, which holds 56.32% (June
30, 2021: 56.32%) shareholding in the Company.
1.2 Following are the subsidiary companies:
Principal
Effective
place of
%age of holding
business
2021 2021
(Unaudited) (Audited)
Listed Company
- IBL HealthCare Limited 74.19% 74.19%
Unlisted Companies
- Searle Pharmaceuticals (Private) Limited 100.00% 100.00%
- Searle Laboratories (Private) Limited 100.00% 100.00%
Pakistan
- Searle Biosciences (Private) Limited 100.00% 100.00%
- IBL Future Technologies (Private) Limited 100.00% 100.00%
- Searle Pakistan Limited
(formerly OBS Pakistan (Private) Limited) 100.00% 100.00%
- Nextar Pharma (Private) Limited * 87.20% 87.20%
* Nextar Pharma (Private) Limited is the subsidiary of Searle Biosciences (Private) Limited
being the indirect subsidiary of the Company.
1.3 These unconsolidated condensed interim financial statements are separate financial
statements of the Company in which investments in subsidiaries have been accounted for
at cost less accumulated impairment losses, if any. Details of the Company’s investment
in subsidiaries are stated in note 7 to these unconsolidated financial statements.
2. BASIS OF PREPARATION
2.1 Statement of compliance
2.1.1 These unconsolidated condensed interim financial statements of the Company have
been prepared in accordance with the accounting and reporting standards as applicable
in Pakistan for interim financial reporting. The accounting and reporting standards as
applicable in Pakistan for interim financial reporting comprises of:

Notes to the Unconsolidated Condensed Interim Financial Statements
- International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by the
International Accounting Standards Board (IASB) as notified under the Companies
Act, 2017; and
- Provisions of and directives issued under the Companies Act, 2017.
Where the provisions of and directives issued under the Companies Act, 2017 differ with
the requirements of IAS 34, the provisions of and directives issued under the Companies
Act, 2017 have been followed.
2.1.2 These unconsolidated condensed interim financial statements does not include all the
information required for full financial statements and should be read in conjunction with
the annual unconsolidated financial statements of the Company as at and for the year
ended June 30, 2021.
2.1.3 The comparative unconsolidated condensed interim statement of financial position

presented in these unconsolidated condensed interim financial statements have been
extracted from the audited annual unconsolidated financial statements of the Company
for the year ended June 30, 2021, whereas the comparative unconsolidated condensed
interim statement of profit or loss, unconsolidated condensed interim statement of
comprehensive income, unconsolidated condensed interim statement of cash flows and
unconsolidated condensed interim statement of changes in equity are extracted from the
un-audited unconsolidated condensed interim financial statements for the period ended
December 31, 2020.
3. SIGNIFICANT ACCOUNTING INFORMATION AND POLICIES
3.1 The accounting policies and methods of computation adopted in the preparation of
these unconsolidated condensed interim financial statements are the same as those
applied in the preparation of the annual audited unconsolidated financial statements of
the Company as at and for the year ended June 30, 2021.
3.2 Changes in accounting standards, interpretations and pronouncements
a) Standards and amendments to approved accounting standards that are

effective
There are certain amendments and interpretations to the accounting and reporting
standards which are mandatory for the Company’s annual accounting period which
began on July 1, 2021. However, these do not have any significant impact on the
Company’s financial reporting.
b) Standards and amendments to approved accounting standards that are not

yet effective
standards that will be mandatory for the Company’s annual accounting periods
beginning on or after July 1, 2022. However, these will not have any impact on
the Company’s financial reporting and, therefore, have not been disclosed in these
unconsolidated condensed interim financial statements.
DECEMBER 2021 13
4. ACCOUNTING ESTIMATES AND JUDGEMENTS AND

FINANCIAL RISK MANAGEMENT
4.1 The preparation of unconsolidated condensed interim financial statements in conformity

with accounting and reporting standards, as applicable in Pakistan, requires management
to make judgements, estimates and assumptions that affect the application of the
accounting policies and the reported amounts of assets, liabilities, income and expenses.
The estimates and associated assumptions are based on historical experience and
various other factors that are believed to be reasonable under the circumstances, the
results of which form the basis of making the judgements about the carrying values of
assets and liabilities that are not readily apparent from other sources. Actual results may
differ from these estimates.
4.2 The significant judgements made by the management in applying the Company’s
accounting policies and the key sources of estimation uncertainty were the same as
those that applied to the annual unconsolidated financial statements as at and for the
year ended June 30, 2021.
4.3 The Company’s financial risk management objectives and policies are consistent with
those disclosed in the audited annual financial statements as at and for the year ended
June 30, 2021.
2021 2021
(Rupees in ‘000)
5. PROPERTY, PLANT AND EQUIPMENT
Operating assets - note 5.1 5,187,642 5,325,199

Capital work-in-progress - at cost 433,453 252,785
5,621,095 5,577,984
5.1 Details of additions in operating assets including transfers from capital work-in-progress
during the period are as follows:
--------------------------- (Unaudited) ---------------------------

Additions Disposals
(at cost) (at net book value)
2021 2020 2021 2020
(Rupees in ‘000)
Leasehold Land - 1,498 - -

Building on leasehold land 16,876 18,130 - -
Plant and machinery 4,573 41,290 - -
Office equipment 10,068 12,403 (58) -
Furniture & fittings 910 8,750 - -
Vehicles - note 5.1.1 - 847 - -
Air conditioning systems 19,181 18,820 - -
51,608 101,738 (58) -

5.1.1 During the period, vehicles having net book value of Rs. Nil were also disposed off
against which sales proceeds of Rs. 2.23 million were received.
2021 2021
(Rupees in ‘000)
6. RIGHT-OF-USE ASSET
Opening net book value 79,410 121,515
Derecognition of right of use asset - (27,322)
Depreciation for the period / year (4,830) (14,783)
Closing net book value 74,580 79,410
7. LONG-TERM INVESTMENTS
Subsidiary companies - at cost - note 7.1 & 7.2 18,036,311 17,436,311
7.1 During the period, OBS Pakistan (Private) Limited - wholly owned subsidiary has
changed its name to Searle Pakistan (Private) Limited (SPL), effective from July 12, 2021
after getting necessary approvals from Securities and Exchange Commission of Pakistan
(SECP). Further, SPL applied for change in status from private limited company to public
limited company, SECP has approved the said conversion into public limited company
with effect from August 27, 2021.
On September 15, 2021, the Board of Directors of the Company resolved that the shares
of SPL - wholly owned subsidiary, may be listed on the Pakistan Stock Exchange Limited
(PSX) upto the maximum extent of 349,010,000 ordinary shares, as and by way of an
initial public offering.
7.2 Subsequent to the period end, SPL made a right issue (1 share for every 3 shares held)
which was declined by the Company. Out of total right issue of 349,010,000 shares,
181,485,200 shares are acquired by third parties. The remaining unsubscribed shares
will be offered to the public in coming months.
2021 2021
(Rupees in ‘000)
8. TRADE RECEIVABLES
Considered good
- Export receivables, secured 707,241 426,619

- Due from related parties, unsecured - note 8.1 8,666,570 8,094,376
- Others - unsecured 408,686 233,973
9,782,497 8,754,968
Considered doubtful 150,323 150,323

Less: Allowance for impairment of trade receivables (150,323) (150,323)
- -
9,782,497 8,754,968
DECEMBER 2021 15
8.1 These are stated net of payable to IBL Operations (Private) Limited, United Brands
Limited and IBL Logistics (Private) Limited - associated companies amounting to Rs.
33.05 million (June 30, 2021: Rs. 219.08 million), Rs. Nil (June 30, 2021: Rs. 8.37 million)
and Rs. 26.53 million (June 30, 2021: Rs. 39.5 million), respectively.
9. LOANS AND ADVANCES
9.1 This includes advance to Searle Biosciences (Private) Limited and Searle Laboratories
(Private) Limited - wholly owned subsidiary amounting to Rs. 779.18 million (June
30, 2021: Rs. 779.18 million) and Rs. 1.03 million (June 30, 2021: Rs. 1.25 million)
respectively. These advances are provided for the purpose of financial assistance and
are settled in the ordinary course of business.
2021 2021
10. OTHER RECEIVABLES (Rupees in ‘000)
Receivables from related parties

Due from Parent Company:
- International Brands (Private) Limited
expenses 17,484 9,804
rental income 12,173 8,526
group relief 116,648 117,089
146,305 135,419
Due from subsidiary companies:
- IBL HealthCare Limited against:
expenses 1,156 554
rental income 847 -
royalty 13,956 24,776
- Searle Pakistan Limited against:
management fee 123,000 123,000
dividend income 1,000,000 500,000
expenses 17,470 12,961
financial assistance 116,000 116,000
- Searle Biosciences (Private) Limited against:
dividend income 139,736 64,916
- Nextar Pharma (Private) Limited against:
expenses 12,752 2,279
- IBL Future Technologies (Private) Limited against:
financial assistance 1,949 1,949
- Searle Pharmaceuticals (Private) Limited against:
dividend income 911 911
1,441,289 857,960

2021 2021
(Rupees in ‘000)
Due from associated companies:
- IBL Operations (Private) Limited against:
expenses 20,931 20,867
advance against claims - note 10.1 491,355 -
- IBL Unisys (Private) Limited against:
rental income 326 163
expenses 257 632
- IBL Frontier Markets (Private) Limited against:
expenses 42,385 24,225
- Universal Ventures (Private) Limited against:
sale of subsidiary - note 10.2 3,326,859 3,326,859
- IBL Logistics (Private) Limited against:
3,890,922 3,377,954
Due from other related parties:

- United Retail (SMC-Private) Limited against:
expenses 57,771 1,071
- Lunar Pharma (Private) Limited against:
Surplus arising under retirement benefit fund 5,250 5,250
Receivables from other than related parties

- International Franchises (Private) Limited* against:
expenses 1,687 21,297
- Universal Distributors Pakistan Limited* against:

rental income 922 922
expenses 141 141
Others, considered good - note 10.3 266,406 324,870
5,822,320 4,762,598
*with effect from June 18, 2021 International Franchises (Private) Limited and United
Distributors Pakistan Limited ceased to be a related party of the Company.
10.1 The amount represents advance given against stock claims.
10.2 On June 28, 2021, the Company sold the 100% share holding in subsidiary - IBL Identity
(Private) Limited, to Universal Ventures (Private) Limited - related party (UVPL) for a
total consideration at a price equal to Rs. 3.53 billion which is equivalent to the cost of
investment of the Company.
DECEMBER 2021 17
Out of the total consideration of Rs. 3.53 billion, Rs. 200 million were received during the
previous year by the Company being the initial consideration. The balance consideration
was receivable in cash as per the agreement in remaining two tranches of Rs. 1 billion
and Rs. 2.33 billion on July 15, 2021 and August 31, 2021 respectively. However, on
September 21, 2021, the Company received a request for deferment, for a total sum of
Rs 3.33 billion, from UVPL for a further period of 8 months from the date of the letter.
On October 4, 2021, the said deferment was approved by the Board of Directors of the
Company.
10.3 This includes Rs. 178.42 million (June 30, 2021: Rs. 235.02 million) claimed by the
Company from Zhejiang Huahai Pharmaceuticals, China (ZHP) relating to its product
“Extor” that contains material supplied by ZHP. Claims amounting to Rs. 56.60 (June 30,
2021: Rs. 44.1 million) million were settled during the period.
11. SHARE CAPITAL
Authorised share capital

(Unaudited) (Audited) (Unaudited) (Audited)
December 31, June 30, December 31, June 30,
2021 2021 2021 2021
(Number of shares) (Rupees in ‘000)
400,000,000 300,000,000 Ordinary shares of Rs. 10 each 4,000,000 3,000,000
Issued, subscribed and paid up capital
(Number of shares)
40,168,355 40,168,355 Shares allotted for consideration 401,683 401,683

paid in cash
24,000 24,000 Shares allotted for consideration 240 240

other than cash
271,860,328 199,848,171 Shares allotted as bonus 2,718,603 1,998,482

shares - note 11.2
312,052,683 240,040,526 3,120,526 2,400,405
11.1 The Company increased its authorised share capital for ordinary shares from Rs. 3 billion
divided into 300 million ordinary shares to Rs. 4 billion divided into 400 million ordinary
shares of Rs 10 each in its annual general meeting held on October 28, 2021.
11.2 The Board of Directors in its meeting held on October 4, 2021, approved the issue of
30 bonus shares for every 100 shares held for the year ended June 30, 2021. The said
bonus was approved by members in its Annual General Meeting held on October 28,
2021. The total size of issue is Rs. 720.12 million (72.01 million shares)

2021 2021
(Rupees in ‘000)
12. LONG-TERM BORROWINGS
Musharaka Facility - notes 12.1 & 12.2 9,041,097 9,537,892

Salary refinancing - 112,593
9,041,097 9,650,485
12.1 The Company has obtained a musharaka facility from Habib Bank Limited (Musharaka
Agent) for a period of 7 years with a repayment grace period of two years. The Company is
required to repay the amount of the loan in quarterly installments, starting from September
2022. However, during the last year on February 24, 2021, the Company has repaid the
loan amounting to Rs. 800 million to its Musharaka Agent. During the period, no repayment
has been made. This facility carries a mark-up of three months KIBOR plus 1.35%.
2021 2021
(Rupees in ‘000)
12.2 Long-term loan movement
Opening Balance 9,537,892 -

Loan obtained - 10,441,500
Transaction cost - (117,989)
Amortisation of transaction cost 8,424 14,381
Repayment - (800,000)
Classified in short term borrowings - note 14 (505,219) -
9,041,097 9,537,892
13. TRADE AND OTHER PAYABLES
Creditors 272,441 291,865

Bills payable in foreign currency 804,807 393,192
Royalty payable 24,510 35,638
Accrued liabilities 2,296,570 1,543,889
Payable to provident fund 12,839 25,377
Advance from customers - unsecured 24,836 50,293
Payable to related parties 233,379 96,116
Accrued mark-up 182,938 185,143
Taxes deducted at source and payable to
statutory authorities 56,728 64,326
Deferred income 25,714 34,285
Deferred payable to Universal Ventures
(Private) Limited - related party - 260,712
Workers’ Profit Participation Fund 53,964 147,552
Workers’ Welfare Fund 38,895 59,738
Other liabilities 42,651 25,746
4,070,272 3,213,872
DECEMBER 2021 19
2021 2021
(Rupees in ‘000)
14. SHORT-TERM BORROWINGS
Secured Borrowings
Conventional
Running finance facility - note -14.1 1,413,581 1,548,476
Demand Finance - 113,333
1,413,581 1,661,809
Islamic
Running Musharaka 5,974,879 3,901,614
Current portion of Salary refinancing 228,178 225,187
Current portion of Musharaka facility -
note 12.2 505,219 -
6,708,276 4,126,801
8,121,857 5,788,610
Unsecured Borrowings
Borrowing from IBL Future Technologies
(Private) Limited - note 14.2 200,000 200,000
8,321,857 5,988,610
14.1 The Company has entered into running finance under mark-up arrangements from
various banks amounting to Rs. 8,000 million (June 30, 2021: Rs. 6,725 million) which
include financing facilities obtained under Islamic mode amounting to Rs. 6,450 million
(June 30, 2021: Rs. 5,175 million). The arrangements are secured jointly by registered
mortgage of Rs. 1,681.25 million (June 30, 2021: Rs. 1,681.25 million) of immovable
property together with joint pari passu charge on all current assets of the Company to the
extent of Rs. 6,889.23 million (June 30, 2021: Rs. 6,889.23 million) in favour of Standard
Chartered Bank (Pakistan) Limited (the lead bank).
14.1.1 The rates of mark-up ranged between 7.95% to 13% (June 30, 2021: 0.75% to 14.74%)
per annum.
14.2 This represents interest free loan obtained from IBL Future Technologies (Private) Limited
- wholly owned subsidiary and is repayable on demand.
15. UNPAID DIVIDEND
15.1 This includes dividend on bonus shares withheld pertaining to 125 shareholders on
which stay from the Honorable High Court of Sindh has been obtained.
15.2 This also includes dividend pertaining to the year ended June 30, 2021 amounting to Rs.
42.36 million, due to unavailability of IBAN numbers, out of which Rs. 31.41 million has
been paid subsequent to the half year ended December 31, 2021.
16. CONTINGENCIES AND COMMITMENTS
16.1 Contingencies
There has been no significant change in the status of contingencies as reported in the
note 27 of annual audited financial statements of the Company for the year ended June
30, 2021.
20 16.2 Commitments
HALF YEARLY REPORT
The facility for opening letters of credit and guarantees from bank as at December 31,
2021 amounted to Rs. 3,305 million (June 30, 2021: Rs. 2,755 million) of which the
amount remaining unutilised as at December 31, 2021 amounted to Rs. 1,017 million
(June 30, 2021: Rs. 1,489.63 million).
(Unaudited)
2021 2020
(Rupees in ‘000)
17. REVENUE FROM CONTRACTS WITH CUSTOMERS
Gross sales
Local sale of goods 8,324,210 7,411,797
Export sales 1,094,199 1,354,756
9,418,409 8,766,553
Toll manufacturing 133,109 139,071
9,551,518 8,905,624
Sales tax (29,265) (30,151)

9,522,253 8,875,473
Less:
Discounts, rebates and allowances 411,061 318,780

Sales return 478,723 403,564
889,784 722,344
8,632,469 8,153,129
17.1 Consequent to Order 4480/2018 dated August 3, 2018 issued by the Honourable
Supreme Court of Pakistan, the Drug Regulatory Authority of Pakistan (DRAP) fixed
maximum retail price of drugs vide notification S.R.O 1610/2018 dated December
31, 2018. Further, DRAP vide Notification S.R.O 34(1)/2019 dated January 10, 2019
increased the maximum retail prices of drugs by nine percent over and above the
maximum retail prices as determined under hardship category during the year 2018 and
fifteen percent over and above existing maximum retail prices determined under Drug
Pricing Policy, 2018 for drugs other than those specified under hardship category.
The Honorable High Court of Sindh vide Order dated January 22, 2019 has disposed off
all the legal cases of the Company against DRAP. As mandated under the orders dated
August 3, 2018 and November 14, 2018 passed by the Honourable Supreme Court
of Pakistan in Human Rights Case No. 2858 of 2006, the Company may file an appeal
before the Appellate Board of DRAP as provided under Section 9 of the Drugs Act, 1976,
if the Company is dissatisfied by the prices fixed by DRAP.
Consequent to the above, the Company challenged the prices for four of its products
namely, Peditral, Gravinate, Metodine and Hydrylline set by DRAP in its Appellate Board
and the Appellate Board under its orders dated 18 June, 20 June and 25 June 2019
rejected the said application of the Company. The Company has challenged the said
orders in the Honourable High Court of Sindh and an interim order has been passed
restricting DRAP from taking any coercive action against the Company.
DECEMBER 2021 21
During the previous year, the Company has received a notice from DRAP which directed
the Company having generic brand name, named Co- Extor, to lower their prices by 15%
than that of corresponding originator brands vide its letter dated May 05, 2021 regarding
the sale of its product “Co-Extor” for selling at the prices higher than the approved prices
of DRAP. The Company has challenged the said order and obtained a stay order dated
May 20, 2021 from Honourable High Court of Sindh, restricting DRAP from taking any
coercive action against the Company.
During June 30, 2021, the Company has received an annual price adjustment on all of
its products at a rate of 7% on essential products and 10% on other products based on
CPI 2020.
Exposure of the Company due to abovementioned litigations amounted to Rs. 1.99

billion (June 30, 2021: Rs. 1.76 billion).
18. COST OF SALES
This includes inventory written-off during the period amounting to Rs. 30.35 million
(December 31, 2020: Rs. 13.19 million)
19. DONATIONS
During the period, the Company made donations amounting to Rs. 57.23 million
(December 31, 2020: Rs 90.86 million). Donations to a single party exceeding 10% of
the total donations pertains to Sabaq Learning foundation - a related party amounting to
Rs. 10 million (December 31, 2020: Rs. 18.11 million).
(Unaudited)
2021 2020
(Rupees in ‘000)
20. OTHER INCOME
Income from financial assets - related parties

Dividend income - subsidiary companies:
- IBL HealthCare Limited 39,009 78,018

- Searle Pakistan Limited 500,000 500,000
- IBL Identity (Private) Limited* - 24,000
- Searle Biosciences (Private) Limited 182,000 98,000
Income from financial assets - others
Return on Term Finance Certificate 4,618 4,611
725,627 704,629
Income from non - financial assets
Rental income from investment properties 36,367 71,704

Gain on disposal of property, plant and equipment 2,419 -
Government grant 17,142 17,142
Scrap sales 5,745 5,994
61,673 94,840
787,300 799,469
* with effect from June 28, 2021 IBL Identity (Private) Limited ceased to be subsidiary of
the Company.


2021 2020
(Re-stated)
21. BASIC AND DILUTED EARNINGS PER SHARE
Profit for the period (Rupees in thousands) 1,270,996 1,445,758
Weighted average number of outstanding shares

at the end of the period (in thousand) 312,053 312,053
Basic and diluted earnings per share (Rupees) 4.07 4.63
(Unaudited) (Unaudited)
2021 2020
(Rupees in ‘000)
22. CASH GENERATED FROM OPERATIONS
Profit before income tax 1,496,971 1,775,831
Add / (less): Adjustments for non-cash

charges and other items
Depreciation of property, plant and equipment 184,856 120,012
Depreciation of right-of-use assets 4,830 9,953
Depreciation of investment properties 34,847 38,853
Gain on disposal of property,
plant and equipment (2,388) -
Amortisation of intangible assets 20,276 22,248
Amortisation of transaction cost 8,424 -
Provision for employee benefits obligation 2,700 2,700
Finance cost 814,092 548,982
Interest on lease liability 7,740 5,880
Government grant recognised in income (17,142) (17,142)
Profit before working capital changes 2,555,206 2,507,317
Effect on cash flow due to working capital

changes
(Increase) / decrease in current assets
Inventories (447,953) 40,150

Trade receivables (1,027,529) 114,620
Loans and advances (55,974) 68,331
Trade deposits and short-term prepayments (22,366) (14,747)
Other receivables (1,059,722) (829,622)
Refund due from Government - Sales tax - 7,832
(2,613,544) (613,436)
Increase / (decrease) in current liabilities
Trade and other payables 867,176 700,480
Sales tax payable (2,631) 3,392
864,545 703,872
Cash flows generated from operations 806,207 2,597,753
DECEMBER 2021 23
2021 2020
(Rupees in ‘000)
23. CASH AND CASH EQUIVALENTS
Cash and bank balances 132,593 1,901,115

Short-term borrowings
- Running finance under markup arrangment - note
14.1 (7,388,460) (5,161,377)
- Loan obtained from employees provident fund - (161,000)
- Loan obtained from employees provident fund of
OBS - (18,000)
(7,255,867) (3,439,262)
24. SEGMENT INFORMATION
Based on internal management reporting structure for the period, no reportable

segments were identified that were of continuing significance for decision making.
25. TRANSACTIONS WITH RELATED PARTIES
The following transactions were carried out with related parties during the period:
Nature of relationship Nature of transactions 2021 2020
(Rupees in ‘000)
Parent company - Corporate service charges 120,000 120,000

- Rent income 7,340 6,677
- Income from provision of amenities 6,226 4,249
- Reimbursement of expenses 290 -
Subsidiaries - Revenue 309,183 446,740

- Purchase of consumables 18,435 3,785
- Royalty 13,737 -
- Dividend income 721,009 700,018
- Short term loan given - 6,446
- Advances recovered 1,250 2,060
- Advance against financial assistance 10,473 175,499
- Income from provision of amenities 1,475 749
- Others 3,547 3,275
Staff retirement - Contributions to Provident Fund 75,553 71,402

benefits - Finance cost on loan - 13,535
- Benefits paid 22,234 57,700

Nature of relationship Nature of transactions 2021 2020
(Rupees in ‘000)
Associated companies - Revenue 7,262,196 6,593,118

- Salaries and wages 2,470 1,606
- Purchases 219 265
- Carriage and duties 71,083 64,433
- Discounts claimed 97,068 87,698
- Rent expense 52,204 10,121
- Rent income 10,934 31,402
- Acquisition of subsidiary 600,000 15,800,000
- Advance against stock claims - note
10.1 491,355 -
- Stock claims 294,631 208,738
- Internet services 311 3,771
- Income from Provision of amenities 26,396 12,890
- Donations 13,225 7,072
- Incentives to field force staff 4,389 11,118
- Repair & maintenance 337 234
- Merchandise expense 14,449 12,130
- Long term loan - 2,360
- Others 28,042 47,596
Key management - Salaries and other

employees employee benefits 114,859 113,403
compensation - Contributions to provident fund 11,446 8,622
25.1 The status of outstanding balances with related parties as at December 31, 2021 is
included in the respective notes to the financial statements.
26. DATE OF AUTHORISATION FOR ISSUE
These unconsolidated condensed interim financial statements were approved and

authorised for issue by the Board of Directors of the Company on February 28, 2022.
DECEMBER 2021 25
nation
Consolidated
ovid
Condensed
orld
Interim
Financial
Statements
28 Directors’ Review Report
29 Directors’ Review Report (Urdu)
31 Consolidated Condensed Interim Statement of

Financial Position

Profit or Loss and Other Comprehensive Income

Changes in Equity

Cash Flows
35 Selected Notes to the Consolidated Condensed

Interim Financial Statement - Unaudited
EPORT
2021
DECEMBER 2021 27
Directors’ Report to the Members
We are pleased to present the consolidated interim financial information of the company for
the half year ended December 31, 2021. These financial statements have been prepared in
accordance with the requirements of the International Accounting Standard (IAS) 34 – ‘Interim
Financial Reporting’. The directors’ report is prepared in accordance with section 227 of the
Companies Act, 2017 and Chapter XII of the Listed Companies (Code of Corporate Governance)
Regulations, 2019.
Financial highlights
Sales for the half year increased by 18% over the same period last year. Company has managed
to maintain its operating expense to sales ratio at 24%, in consolidated financial statements.
Following is the summary of financial results for the half year ended December 31, 2021:
2021 2020
(Rupees in thousand)
Revenue 14,567,196 12,378,375
Cost of sales (8,081,720) (6,572,453)
Gross Profit 6,485,476 5,805,922
Operating expenses (3,455,339) (3,026,557)
Other operating expenses (149,361) (187,767)
Other income 132,196 236,926
Profit from operations 3,012,972 2,828,524
Finance cost (919,181) (648,779)
Profit before tax 2,093,791 2,179,745
Income tax expense (636,183) (657,517)
Profit after taxation 1,457,608 1,522,228
EARNINGS PER SHARE

Basic earnings per share after taxation for the period was Rs. 4.54 (2020: Rs. 4.78). There is
no dilution effect on the basic earnings per share of the Company, as the Company had no
convertible dilutive potential ordinary shares outstanding as at December 31, 2021.
FUTURE OUTLOOK
Searle has a firm commitment to grow and increase its market share among its competitors
and maintain its organic and in-organic growth despite of challenges of a turbulent regulatory
environment and volatile economic scenario due to the pandemic. This commitment of Searle is
reflected in the acquisition of OBS Pharma (now Searle Pakistan Limited). Searle is also focusing
on its product demand in international market due to increased healthcare spending trend after
COVID-19 which is expected to translate into greater revenues for the industry.
At Searle, we are all highly motivated and willing to contribute enthusiastically for the progress
of the Company. Same is the case with our partners, suppliers and customers, for which we
are thankful and expect the same zeal and zest for future contribution. We assure Searle will
continue to work hard to provide long term sustainable growth to everyone associated with us.
For and on behalf of the Board

Syed Nadeem Ahmed Zubair Razzak Palwala
Chief Executive Officer Director
Karachi: February 28, 2022

‫ڈارئرٹکیزیکروپرٹرباےئربممان‬
‫سمرت‬ ‫مہ ‪ 31‬دربمس ‪ 2021‬وک متخ وہےن واےل امششیہ دمت ےک ےیل ینپمک یک اامتشیل وبعری امایلیت ولعمامت شیپ رکےت وہےئ ّ‬
‫وسحمس رکرےہ ںیہ۔ ہی امایلیت ایبانت نیب االوقایم ااکؤگنٹن اڈنیٹسرڈ (‪’ - 34 )IAS‬وبعری انفلشن روپرگنٹ‘ یک رضورایت ےک‬
‫ٹ�‬
‫اطمقب ایتر ےیک ےئگ ںیہ۔ ڈارئرٹکیز روپرٹ زینپمک اٹکی ‪ 2017‬یک دہعف ‪ 227‬اور لس� ڈ� وینپمکں (اکروپرٹی وگرسنن ےک اضہطب ) یک‬
‫ش ن�‬
‫روگیل�ی�� ز�‪2019‬ےکابب‪XII‬ےکاطمقبایتریکیئگےہ۔‬
‫امایلیتایکلھجں‬
‫رفوتخ ںیم زگہتش اسل امششیہ یک ایس دمت ےک اقمےلب ںیم ‪ 18‬دصیف ااضہف وہا۔ینپمک اامتشیل امایلیت ولعمامت ںیم اےنپ آرپگنٹی‬
‫ارخااجتاوررفوتخےکانتبسوک‪24‬دصیفرپربرقاررےنھکںیماکایمبوہیئگےہ۔‬
‫‪31‬دربمس‪2021‬وکمتخوہےنواےلامششیہےکامیلاتنجئاکالخہصدنمرہجذلیےہ‪:‬‬
‫‪2020‬‬ ‫‪2021‬‬
‫م)‬‫(اپاتسکین روےپ زہاروں ی‬
‫‪12,378,375‬‬ ‫‪14,567,196‬‬ ‫ٓادمین‬
‫)‪(6,572,453‬‬ ‫)‪(8,081,720‬‬ ‫رفوتخےکارخااجت‬
‫‪5,805,922‬‬ ‫‪6,485,476‬‬ ‫ومجمیعٓادمین‬
‫)‪(3,026,557‬‬ ‫)‪(3,455,339‬‬ ‫ٓارپگنٹیارخااجت‬
‫)‪(187,767‬‬ ‫)‪(149,361‬‬ ‫درگیٓارپگنٹیارخااجت‬
‫‪236,926‬‬ ‫‪132,196‬‬ ‫درگیٓادمین‬
‫‪2,828,524‬‬ ‫‪3,012,972‬‬ ‫ٓارپزنشیےسٓادمین‬
‫)‪(648,779‬‬ ‫)‪(919,181‬‬ ‫امایلیتارخااجت‬
‫‪2,179,745‬‬ ‫‪2,093,791‬‬ ‫انمعفلبقازسکیٹ‬
‫)‪(657,517‬‬ ‫)‪(636,183‬‬ ‫امکنسکیٹارخااجت‬
‫‪1,522,228‬‬ ‫‪1,457,608‬‬ ‫انمعفدعبازسکیٹ‬
‫یفرئیشٓادمین‬
‫اس دمت ےک ےیل اینبدی ٓادمین یف رئیش دعب از سکیٹ روےپ‪4.54‬ریہ (‪ 4.78 :2020‬روےپ)۔ ینپمک یک اینبدی آدمین یف رئیش رپ یمک‬
‫ےکوکیئارثاتںیہنوہےئ‪،‬وچہکن‪31‬دربمس‪2021،‬کتینپمکےکدبتلیذپریریغوتمعقہنکممصصحاقبایںیہنےھت۔‬
‫‪DECEMBER 2021‬‬ ‫‪29‬‬

‫لبقتسمرپاکیرظن‬
‫رسلاےنپرحفیاداروںےکدرایمناےنپامرٹیکرئیشزوکڑباھےناورزایدہرکےنےکرُپزعمےہ اور ًاتبسنرپاشیننکروگیرٹیلی‬
‫اموحلاوراعیملوابءیکوہجےسریغمکحتسماعمیشوصراحتلےکزجنلیچےکابووجداےنپانایمیتاورریغانایمیتوشنامنوکربرقاررےھکوہےئ‬
‫ےہ۔ رسل ےک اس زعم یک اکعیس او یب اسی افرام (وموجدہ رسل اپاتسکن ڈٹیمل) ےک وصحل ےس وہیت ےہ۔ اتمہ‪ ،‬نیب االوقایم ڈنمی‬
‫ںیم اینپ رپوڈٹک ڈامیڈن رپ وتہج رموکز رکےن ےک اسھت ‪ COVID-19 ،‬ےک دعب ڑبیتھ وہیئ ھتلیہ رئیک اور ڑبےتھ وہےئ راحجن یک‬
‫دبوتلسجےسوتعقےہہکاڈنرٹسییکٓادمینںیمڑبےامیپےنرپااضہفوہاگ۔‬
‫ل� ئ‬
‫رسل ںیم مہ بس ااہتنیئ د جم�ی ےس اور لقتسم اینبدوں رپ وجش و رخوش ےس اےنپ ہصح ڈاےنل ےک ےئل ایتر ںیہ۔ ایس رطح امہرے‬
‫رشاتکدار‪،‬الپسرئزاوراصرنیفیھبیسذجےباکااہظررکےتںیہ‪،‬سجےکےئلمہرکشزگارںیہاورٓادنئہےکاعتونےکےئلایس‬
‫وجش و ذجےب یک وتعق رکےت ںیہ۔ مہ نیقی داہین رکاےت ںیہ ہک‪ ،‬رسل اےنپ ےس واہتسب رہ رفد وک وطلی دمیت اور اپدیئار رتیق یک رفایمہ‬
‫ےکےئلتخسدجودہجاورنگلےسوکاشںرںیہےگ۔‬
‫رباےئاوروبرڈیکاجبنےس‬
‫ ‬
‫زریبرزاقاپلواال‬ ‫ ‬ ‫دیسدنمیادمح‬
‫ڈارئرٹکی‬ ‫ ‬‫فیچازگیوٹکیٓارسیف‬
‫رکایچ‪:‬رفوری‪2022 ،28‬ء‬
‫‪30‬‬ ‫‪HALF YEARLY REPORT‬‬

CONSOLIDATED CONDENSED INTERIM STATEMENT OF
FINANCIAL POSITION
As at December, 2021
(Un-audited) (Audited)
2021 2021
ASSETS Note (Rupees in ‘000)
Non-current assets
Property, plant and equipment 5 8,753,950 8,741,499
Right-of-use asset 6 74,580 79,410
Investment properties 3,084,893 2,970,279
Intangibles 7 15,602,852 15,622,504
Long-term loans and advances 182 325
Long-term deposits 25,252 24,137
27,541,709 27,438,154
Current assets
Inventories 5,490,026 4,886,018
Trade receivables 8 11,831,269 10,038,858
Loans and advances 9 1,004,677 1,035,531
Trade deposits and short-term prepayments 175,801 145,493
Accrued markup - 1,106
Other receivables 10 4,583,561 4,016,938
Short-term investment at amortised cost 115,773 116,721
Taxation - payments less provision 1,170,353 1,243,726
Tax refunds due from government - Sales tax 54 -
Cash and bank balances 345,274 222,996
Deferred tax asset 149,234 -
24,866,021 21,707,387
Total assets 52,407,730 49,145,541
EQUITY AND LIABILITIES
EQUITY
Share capital 3,120,526 2,400,405
Share premium 5,329,298 6,049,419
Unappropriated profit 13,166,876 12,776,023
General reserve 280,251 280,251
Revaluation surplus on property, plant and equipment 4,011,892 4,066,913
Attributable to owners of
The Searle Company Limited - Holding Company 25,908,843 25,573,011
Non-controlling interests 539,796 513,181
26,448,639 26,086,192
LIABILITIES
Non-current liabilities
Long-term borrowings 12 9,099,139 9,693,174
Deferred tax liabilities 173,530 59,174
Employee benefit obligations 65,434 76,669
Deferred income - Government grant - 9,246
Long term lease liability 89,686 93,092
9,427,789 9,931,355
Current liabilities
Trade and other payables 13 6,177,841 5,088,191
Short-term borrowings 14 10,001,387 7,794,044
Unpaid dividend 15 231,876 171,176
Unclaimed dividend 113,864 49,367
Sales tax payable 1,568 20,800
Current portion of long-term lease liability 4,766 4,416
16,531,302 13,127,994
Total liabilities 25,959,091 23,059,349
Contingencies and commitments 16
Total equity and liabilities 52,407,730 49,145,541
The annexed notes from 1 to 25 form an integral part of these consolidated condensed interim financial
statements
DECEMBER 2021 31
CONSOLIDATED CONDENSED INTERIM STATEMENT OF PROFIT OR
LOSS AND OTHER COMPREHENSIVE INCOME
Quarter ended Half year ended

2021 2020 2021 2020
Revenue from contract with

customers 17 6,889,335 6,815,891 14,567,196 12,378,375
Cost of sales 18 (3,809,089) (3,570,067) (8,081,720) (6,572,453)
Gross profit 3,080,246 3,245,824 6,485,476 5,805,922
Distribution costs (1,467,972) (1,334,417) (2,778,710) (2,349,443)
Administrative expenses (332,762) (361,247) (676,629) (677,114)
Other operating expenses (56,825) (115,270) (149,361) (187,767)
Other income 19 91,367 194,040 132,196 236,926
Profit from operations 1,314,054 1,628,930 3,012,972 2,828,524
Finance cost (496,578) (376,300) (919,181) (648,779)
Profit before income tax 817,476 1,252,630 2,093,791 2,179,745
Income tax expense (264,337) (378,738) (636,183) (657,517)
Profit for the year 553,139 873,892 1,457,608 1,522,228
Other comprehensive income - - - -

the period 553,139 873,892 1,457,608 1,522,228
Total comprehensive income

is attributable to:
Owners of the The Searle

Company Limited - Holding
Company 529,920 855,243 1,415,915 1,490,842
Non-controlling interests 23,219 18,649 41,693 31,386

553,139 873,892 1,457,608 1,522,228
(Restated) (Restated)
Basic and diluted earnings per
share (Rupees) 20 1.70 4.03 4.54 4.78
statements

CHANGES IN EQUITY
Capital reserves Revenue reserves

Advance Reval-
received uation Non- Con-
Share Share Unap- Sub-Total
against surplus on General trolling Total
capital premium pro-priat- reserves
issue of Property, reserve interest
account ed profits
share plant &
capital equipment
(Rupees in ‘000)
Balance as at July 01, 2020 2,124,253 - 1,630,974 1,846,153 280,251 9,605,494 13,362,872 475,406 15,962,533

the period - - - - - 1,490,842 1,490,842 31,386 1,522,228

June 30, 2020 @ Rs. 2.5
per share - - - - - (531,063) (531,063) - (531,063)
Dividend pertaining to non-

controlling interests - - - - - - - (30,157) (30,157)
Advance received against issue

of share capital - 4,364,474 - - - - - - 4,364,474
Issuance cost against rights issue

- - - - - (25,060) (25,060) - (25,060)
- 4,364,474 - - - (556,123) (556,123) (30,157) 3,778,194
depreciation - net of
deferred tax - - - (25,802) - 25,802 - - -
Balance as at December 31,

2020 2,124,253 4,364,474 1,630,974 1,820,351 280,251 10,566,015 14,297,591 476,635 21,262,955
Balance as at July 01, 2021 2,400,405 - 6,049,419 4,066,913 280,251 12,776,023 23,172,606 513,181 26,086,192

the period - - - - - 1,415,915 1,415,915 41,693 1,457,608

June 30, 2021 @ Rs. 2
per share - - - - - (480,083) (480,083) - (480,083)
Issue of bonus shares 720,121 - (720,121) - - - (720,121) - -
Dividend pertaining to non-

controlling interests - - - - - - - (15,078) (15,078)
Transaction with non-controlling

interests - - - - - (600,000) (600,000) (600,000)
720,121 - (720,121) - - (1,080,083) (1,800,204) (15,078) (1,095,161)
depreciation - net of
deferred tax - - - (55,021) - 55,021 - - -
Balance as at December
31, 2021 3,120,526 - 5,329,298 4,011,892 280,251 13,166,876 22,788,317 539,796 26,448,639
The annexed notes from 1 to 25 form an integral part of these consolidated condensed interim financial statements
DECEMBER 2021 33
CASH FLOWS

2021 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from operations 21 1,417,360 2,873,520

Employee benefit obligations paid (16,215) -
Finance cost paid (943,308) (589,680)
Income tax paid (744,433) (722,951)
Interest income received 1,768 -
(Increase) / decrease in long-term deposits (1,115) 6,432
Lease rentals paid (10,976) (13,108)
Decrease / (increase) in long-term loans and advances (143) (183)
Net cash generated from operating activities (297,063) 1,554,030
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment (552,137) (548,204)

Consideration for acquisition of wholly owned subsidiary - net (600,000) (10,269,400)
Sale proceeds on disposal of property, plant and equipment 3,350 802
Additions to investment properties (149,461) (222,421)
Short-term investments 948 -
Purchase of intangible assets (4,262) -
Net cash used in investing activities (1,301,562) (11,039,223)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividend paid (610,002) 93,965

(Payment to) / proceeds from export refinance - 216,500
Proceeds from subordinated loan - 300,000
(Repayment) / Proceeds of borrowings (171,536) 7,993,821
Repayment of demand finance facility (113,333) -
Deferred considertion paid - (4,709,849)
Advance received against issue of share capital net of
issuance cost - 4,339,414
Net cash generated from / (used in) financing activities (894,871) 8,233,851
Net increase in cash and cash equivalents (2,493,496) (1,251,342)
Cash and cash equivalents at beginning of the period (7,162,617) (4,484,264)
Cash and cash equivalents at end of the period 22 (9,656,113) (5,735,606)
(9,656,113) (5,735,606)
statements

NOTES TO THE CONSOLIDATED CONDENSED INTERIM
FINANCIAL STATEMENTS
For the period ended September 30 , 2021 - Unaudited
1. LEGAL STATUS AND OPERATIONS
1.1 The Searle Company Limited (the Company) was incorporated in Pakistan as a private
limited company in October 1965. In November 1993, the Company was converted
into a public limited company. Its shares are quoted on the Pakistan Stock Exchange.
The Company is principally engaged in the manufacture of pharmaceutical and other
consumer products. The registered office of the Company is situated at One IBL Centre
2nd Floor, Plot No. 1, Block 7 & 8 D.M.C.H.S, Tipu Sultan Road Off Shahrah-e-Faisal,
Karachi.
International Brands Limited is the holding company, which holds 56.32% shareholding
in the Company.
Following are the subsidiary companies:
Principal
Effective
place of
%age of holding
business
2021 2021
Listed Company
- IBL HealthCare Limited 74.19% 74.19%
Unlisted Companies
- Searle Pharmaceuticals (Private) Limited 100.00% 100.00%
- Searle Laboratories (Private) Limited 100.00% 100.00%
Pakistan
- Searle Biosciences (Private) Limited 100.00% 100.00%
- IBL Future Technologies (Private) Limited 100.00% 100.00%
Searle Pakistan Limited (formerly OBS
- (Pakistan) Private Limited) 100.00% Nil
- Nextar Pharma (Private) Limited * 87.20% 87.20%
*Nextar Pharma (Private) Limited is the subsidiary of Searle Biosciences (Private)

Limited being the indirect subsidiary of the Company.
2. BASIS OF PREPARATION
These condensed interim financial statements have been prepared in accordance with
the accounting and reporting standards as applicable in Pakistan for interim financial
reporting. The accounting and reporting standards as applicable in Pakistan for interim
financial reporting comprise of:
- International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by the
International Accounting Standards Board (IASB) as notified under the Companies
Act, 2017; and
- Provisions of and directives issued under the Companies Act, 2017.
Where the provisions of and directives issued under the Companies Act, 2017 differ with
the requirements of IAS 34, the provisions of and directives issued under the Companies
Act, 2017 have been followed.
DECEMBER 2021 35
Notes to the Consolidated Condensed Interim Financial Statements
These condensed interim financial statements do not include all the information required
for full financial statements and should be read in conjunction with the annual financial
statements for the year ended June 30, 2021.
2.1 Changes in accounting standards, interpretations and pronouncements
a) Standards, interpretations and amendments to published approved

accounting standards that are effective
standards which are mandatory for the Company’s annual accounting period which
began on July 1, 2021. However, these do not have any significant impact on the
Company’s financial reporting.
b) Standards, interpretations and amendments to published approved

accounting standards that are not yet effective
standards that will be mandatory for the Company’s annual accounting periods
beginning on or after July 1, 2022. However, these will not have any impact on
the Company’s financial reporting and, therefore, have not been disclosed in these
consolidated condensed interim financial statements.
3. SIGNIFICANT ACCOUNTING INFORMATION AND POLICIES
The accounting policies adopted in the preparation of these consolidated condensed

interim financial statements are the same as those applied in the preparation of the
annual financial statements of the Company for the year ended June 30, 2021.
4. ACCOUNTING ESTIMATES, JUDGEMENTS AND

FINANCIAL RISK MANAGEMENT
The preparation of these consolidated condensed interim financial statements in

conformity with approved accounting and reporting standards requires management to
make estimates, assumptions and use judgements that affect the application of policies
and reported amounts of assets and liabilities and income and expenses. Estimates,
assumptions and judgements are continually evaluated and based on historical
experience and other factors, including reasonable expectations of future events.
Revisions to accounting estimates are recognised prospectively commencing from the
period of revision.
Judgements and estimates made by the management in the preparation of this

consolidated condensed interim financial information are the same as those that were
applied to the annual audited consolidated financial statements as at and for the year
ended June 30, 2021.
The Company’s financial risk management objectives and policies are consistent with
those disclosed in the annual audited consolidated financial statements as at and for the
year ended June 30, 2021.

2021 2021
(Rupees in ‘000)
5. PROPERTY, PLANT AND EQUIPMENT
Operating assets - note 5.1 8,035,116 8,256,752

Capital work-in-progress - at cost 718,834 484,747
8,753,950 8,741,499
5.1 Details of additions in operating assets including transfers from capital work-in-progress
during the period are as follows:
Additions Disposals
(at cost) (at net book value)
2021 2020 2021 2020
(Rupees in ‘000)
Leasehold land - 1,498 - -
Building on leasehold land 70,237 22,788 - -
Plant and machinery 26,731 43,167 - -
Office equipment 10,898 16,607 (92,178) -
Furniture & fittings 3,211 9,244 (762) -
Vehicles - 847 - (802)
Air conditioning systems 19,181 19,169 - -
130,258 113,320 (92,940) (802)
2021 2021
(Rupees in ‘000)
6. RIGHT-OF-USE ASSET
Opening net book value 79,410 121,515

Derecognition of right of use asset - (27,322)
Depreciation for the period - note 6.1 (4,830) (14,783)
Net book value as at December 31, 2021 74,580 79,410
6.1 Depreciation expense on right-of-use asset has been charged to cost of sales.
7. INTANGIBLES December 31, June 30,
2021 2021
Operating intangible assets 115,681 135,333

Market authorisation rights 2,200,000 2,200,000
Trademarks / brands 2,500,000 2,500,000
Goodwill pertaining to Nextar Pharma (Private)
Limited and Searle Pakistan Limited 10,787,171 10,787,171
15,602,852 15,622,504
DECEMBER 2021 37
2021 2021
8. TRADE RECEIVABLES (Rupees in ‘000)
Considered good
- Export receivables, secured 965,226 514,752
- Due from related parties, unsecured 9,627,438 8,784,916
- Others, unsecured 1,238,605 739,190
11,831,269 10,038,858
Considered doubtful - others 165,194 163,593
Less: Provision for doubtful receivables (165,194) (163,593)
11,831,269 10,038,858
2021 2021
9. LOANS AND ADVANCES - considered good (Rupees in ‘000)
Advances to:
Secured
- employees for operating activities 185,780 98,039
- employees against salaries - 32,620
Unsecured
- advance to Universal Ventures (Private) Limited 1,400 1,400
- suppliers 626,829 722,702
- against imports 184,090 157,480
- against LC margin - 16,585
Other advances 6,296 6,475
1,004,395 1,035,301
Current portion of long-term loans to employee 282 230
1,004,677 1,035,531

2021 2021
10. OTHER RECEIVABLES (Rupees in ‘000)
Receivables from related parties

Due from ultimate parent company and associated companies:
- International Brands Limited 146,305 155,419
- IBL Operations (Private) Limited 519,403 24,383
- Universal Ventures (Private) Limited 3,326,859 3,326,859
- IBL Frontier Market (Private) Limited 42,385 24,859
- IBL Logistics (Private) Limited 1,692 1,692
- IBL Unisys (Private) Limited 583 795
4,037,227 3,534,007
Due from other related party:
- IBL Identity (Private) Limited* - 3,111
- United Retail (SMC- Private) Limited 66,109 35,347
Receivable from provident fund - 2,267

66,109 40,725
Surplus arising under retirement benefit fund 5,250 5,250
Receivables from other than related parties

International Franchises (Private) Limited** 4,976 24,735
United Distributors (Private) Limited** 1,063 1,063
Others, considered good - note 10.1 468,936 411,158
4,583,561 4,016,938
* with effect from June 18, 2021, International Franchises (Private) Limited and United
Distributors Pakistan Limited have ceased to be a related party of the Group.
** with effect from June 28, 2021, IBL Identity (Private) Limited ceased to be subsidiary
of the Group.
10.1 This includes Rs. 178.42 million (June 30, 2021: Rs. 235.02 million) claimed by the
Company from Zhejiang Huahai Pharmaceuticals, China (ZHP) relating to its product
“Extor” that contains material supplied by ZHP. Claims amounting to Rs. 56.60 (June 30,
2021: Rs. 44.1 million) were settled during the period.
DECEMBER 2021 39
11. SHARE CAPITAL
Authorised share capital
(Unaudited) (Audited) (Unaudited) (Audited)

December 31, June 30, December 31, June 30,
2021 2021 2021 2021
(Number of shares) (Rupees in ‘000)
400,000,000 300,000,000 Ordinary shares of Rs. 10 each 4,000,000 3,000,000
Issued, subscribed and paid up capital
(Number of shares)
40,168,355 40,168,355 Shares allotted for consideration 401,683 401,683
paid in cash
24,000 24,000 Shares allotted for consideration 240 240

other than cash
Shares allotted as bonus shares

271,860,328 199,848,171 - note 11.2 2,718,603 1,998,482
312,052,683 240,040,526 3,120,526 2,400,405
11.1 The Company increased its authorised share capital for ordinary shares from Rs. 3 billion
divided into 300 million ordinary shares to Rs. 4 billion divided into 400 million ordinary
shares of Rs 10 each in its annual general meeting held on October 28, 2021.
11.2. The Board of Directors in its meeting held on October 4, 2021, approved the issue of
30 bonus shares for every 100 shares held for the year ended June 30, 2021. The said
bonus was approved by members in its Annual General Meeting held on October 28,
2021. The total size of issue is Rs. 720.12 million (72.01 million shares)
2021 2021
(Rupees in ‘000)
12. LONG-TERM BORROWINGS
Long term loan from Habib Bank Limited - note 12.1 9,094,475 9,537,892
Salary refinancing - 150,618
9,094,475 9,688,510
Retention money 4,664 4,664
9,099,139 9,693,174
12.1 The Company has obtained a musharaka facility from Habib Bank Limited (Musharaka
Agent) for a period of 7 years with a repayment grace period of two years. The Company
is required to repay the amount of the loan in quarterly installments, starting from
September 2022. However, during the last year on February 24, 2021, the Company
has repaid the loan amounting to Rs. 800 million to its Musharaka Agent. During the
period, no repayment has been made. This facility carries a mark-up of three months
KIBOR plus 1.35%.

2021 2021
(Rupees in ‘000)
13. TRADE AND OTHER PAYABLES
Creditors 895,754 880,526

Payable under group relief - 27,121
Salaries and benefits payable - 5,555
Bills payable in foreign currency 1,228,023 393,192
Royalty payable 24,510 35,638
Accrued liabilities 3,125,407 2,462,761
Payable to provident fund 19,249 34,203
Current portion of deferred income - government grant 26,128 39,999
Advance from customers - unsecured 98,630 201,505
Payable for compensated absences - 11,495
Provision for gas infrastructure - 9,485
Deferred payable to UVPL - related party - 260,712
Accrued markup 251,806 255,782
Taxes deducted at source and payable to
statutory authorities 143,463 71,648
Workers’ Profit Participation Fund 177,985 228,765
Workers’ Welfare Fund 95,298 100,137
Other liabilities 91,588 69,667
6,177,841 5,088,191
14. SHORT-TERM BORROWINGS
Secured borrowings
Conventional:
Running finance under mark-up arrangements -
note 14.1 2,283,722 2,587,074
Demand finance facility - 113,333
Islamic:
Running Musharaka 6,909,843 4,798,539
Current portion of long term borrowings 807,822 295,098
7,717,665 5,093,637
10,001,387 7,794,044
14.1 The Company has entered into running finance under mark-up arrangements from
various banks amounting to Rs. 8,000 million (June 30, 2021: Rs. 6,725 million) which
include financing facilities obtained under Islamic mode amounting to Rs. 6,450 million
(June 30, 2021: Rs. 5,175 million). The arrangements are secured jointly by registered
mortgage of Rs. 1,681.25 million (June 30, 2021: Rs. 1,681.25 million) of immovable
property together with joint pari passu charge on all current assets of the Company
to the extent of Rs. 6,889.23 million (June 30, 2021: Rs. 6,889.23 million) in favour of
Standard Chartered Bank (Pakistan) Limited (the lead bank).
DECEMBER 2021 41
This includes facility obtained by SPL from Dubai Islamic Bank amounting to Rs.550
million carrying markup rate at Kibor plus 2% per annum, repayable within one year.
The facility is secured by way of joint pari passu hypothecation charge over stock
and receivables of OBS amounting to Rs. 733.3 million including 25% margin.
Moreover, SPL have obtained running finance facilities from commercial banks amounting
to Rs 1.15 billion, carry markup ranging from 7.0% to 9.9%. The facilities are secured
by way of joint pari passu hypothecation charge over current assets of OBS including
25% margin.
14.2 The rates of mark-up ranged between 7.95% to 13% (June 30, 2021: 0.75% to 14.74%)
per annum.
15. UNPAID DIVIDEND
15.1 This includes dividend on bonus shares withheld pertaining to 125 shareholders on
which stay from the Honorable High Court of Sindh has been obtained.
15.2 This also includes dividend pertaining to the year ended June 30, 2020 by the Company
amounting to Rs. 46.32 million, due to unavailability of IBAN numbers, out of which Rs.
31.41 million has been paid subsequent to the half year ended December 31, 2021.
16. CONTINGENCIES AND COMMITMENTS
16.1 Contingencies
There has been no significant change in the status of contingencies as reported in the
note 30 of consolidated audited financial statements of the Company for the year ended
June 30, 2021.
16.2 Commitments
The facility for opening letters of credit and guarantees of the Company as at December
31, 2021 amounted to Rs. 3,305 million (June 30, 2021: Rs. 2,755 million) of which the
amount remaining unutilised as at December 31, 2021 amounted to Rs. 1,017 million
(June 30, 2021: Rs. 1,489.63 million).
(Unaudited)
2021 2020
17. REVENUE FROM CONTRACT WITH CUSTOMERS (Rupees in ‘000)
Gross sales
Local sales - note 17.1 14,574,230 12,151,433
Export sales 1,209,906 1,459,028
15,784,136 13,610,461
Toll manufacturing 133,109 139,071

15,917,245 13,749,532
Sales tax (106,478) (106,238)

15,810,767 13,643,294
Less:
Discounts, rebates and allowances 656,681 599,270

Sales returns 586,890 665,650
1,243,571 1,264,920
14,567,196 12,378,374
17.1 Consequent to Order 4480/2018 dated August 3, 2018 issued by the Honourable
Supreme Court of Pakistan, the Drug Regulatory Authority of Pakistan (DRAP) fixed
maximum retail price of drugs vide notification S.R.O 1610/2018 dated December
31, 2018. Further, DRAP vide Notification S.R.O 34(1)/2019 dated January 10, 2019
increased the maximum retail prices of drugs by nine percent over and above the
maximum retail prices as determined under hardship category during the year 2018 and
fifteen percent over and above existing maximum retail prices determined under Drug
Pricing Policy, 2018 for drugs other than those specified under hardship category.
The Honorable High Court of Sindh vide Order dated January 22, 2019 has disposed off
all the legal cases of the Company against DRAP. As mandated under the orders dated
August 3, 2018 and November 14, 2018 passed by the Honourable Supreme Court
of Pakistan in Human Rights Case No. 2858 of 2006, the Company may file an appeal
before the Appellate Board of DRAP as provided under Section 9 of the Drugs Act, 1976,
if the Company is dissatisfied by the prices fixed by DRAP.
Consequent to the above, the Company challenged the prices for four of its products
namely, Peditral, Gravinate, Metodine and Hydrylline set by DRAP in its Appellate Board
and the Appellate Board under its orders dated 18 June, 20 June and 25 June 2019
rejected the said application of the Company. The Company has challenged the said
orders in the Honourable High Court of Sindh and an interim order has been passed
restricting DRAP from taking any coercive action against the Company.
During the previous year, the Company has received a notice from DRAP which directed
the Company having generic brand name, named Co- Extor, to lower their prices by 15%
than that of corresponding originator brands vide its letter dated May 05, 2021 regarding
the sale of its product “Co-Extor” for selling at the prices higher than the approved prices
of DRAP. The Company has challenged the said order and obtained a stay order dated
May 20, 2021 from Honourable High Court of Sindh, restricting DRAP from taking any
coercive action against the Company.
During June 30, 2021, the Company has received an annual price adjustment on all of
its products at a rate of 7% on essential products and 10% on other products based
on CPI 2020.
Exposure of the Company due to abovementioned litigations amounted to Rs. 1.99

billion (June 30, 2021: Rs. 1.76 billion).
18. COST OF SALES
This includes inventory written-off by the Company during the period amounting to Rs.
39.64 million (December 31, 2020: Rs. 13.19 million)
DECEMBER 2021 43

2021 2020
(Rupees in ‘000)
19. OTHER INCOME
Income from financial assets

Interest on loan to International Brands (Private) Limited - 10,471
Exchange gain 64,274 121,148
Interest income on Term Finance Certificate 4,618 4,611
68,892 136,230
Income from non - financial assets

Rental income from investment properties 34,994 76,325
Gain on disposal of property, plant and equipment 2,469 -
Scrap sales 7,272 6,137
Government grant 17,697 17,142
Others 872 1,092
63,304 100,696
132,196 236,926
20. BASIC AND DILUTED EARNINGS PER SHARE

(Re-stated)
Profit for the period 1,415,915 1,490,842
Weighted average number of outstanding shares

at the end of the period (in thousand) 312,053 312,053
Basic and diluted earnings per share (Rupees) 4.54 4.78

2021 2020
(Rupees in ‘000)
21. CASH GENERATED FROM OPERATIONS
Profit before income tax 2,093,791 2,179,745
Add / (less): Adjustments for non-cash

charges and other items
Depreciation on property, plant and equipment 258,954 163,935
Depreciation on investment property 34,847 38,853
Depreciation on right-of-use-asset 9,879 12,558
Gain on disposal of property, plant and equipment (2,438) -
Amortisation 23,914 23,688
Provision for retirement benefits obligation 4,170 1,720
Deferred Income - Governent grant (17,993) (17,142)
Unwinding of discount on salary refinancing 2,686 2,477
Interest income (662) (10,471)
Finance cost 818,644 634,442
Interest on lease liability 9,577 5,880
Amortisation of transaction cost 8,424 -
Profit before working capital changes 3,243,793 3,035,685


2021 2020
(Rupees in ‘000)
Effect on cash flow due to working capital changes
(Increase) / decrease in current assets
Inventories (604,008) (439,134)

Trade receivables (1,792,411) (5,843)
Loans and advances 30,854 25,403
Trade deposits and short-term prepayments 30,308 (6,844)
Accrued markup 1,106 -
Tax refunds due from government - Sales tax (54) (10,471)
Other receivables (566,623) (46,657)
(2,900,827) (483,546)
Increase in current liabilities
Trade and other payables 1,093,627 321,380

Sales tax payable (19,232) -
Cash generated from operations 1,417,360 2,873,519
22. CASH AND CASH EQUIVALENTS
Cash and bank balances 345,274 2,188,252

Short term running finances - note 14 (10,001,387) (7,744,858)
Loan from provident fund - Holding Company - (161,000)
Loan from provident fund - OBS - (18,000)
(9,656,113) (5,735,606)
23. SEGMENT INFORMATION
Based on internal management reporting structure for the period, no reportable segments
were identified that were of continuing significance for decision making.
DECEMBER 2021 45
24. TRANSACTIONS WITH RELATED PARTIES
The following transactions were carried out with related parties during the period :
Nature of relationship Nature of transactions December 31, December 31,

2021 2020
(Rupees in ‘000)
Holding company - Corporate service charges 120,000 120,000

- Income from provision of
amenities - 4,249
- Reimbursement of expenses 290 3,810
Associated companies - Revenue 11,362,714 6,593,118

- Salaries and wages 2,470 1,606
- Purchases 219 265
- Carriage and duties 71,083 64,433
- Discounts claimed 97,068 87,698
- Rent expense 52,204 10,121
- Rent income 11,063 31,402
- Stock claims 394,355 208,738
- Advance against stock
claims 491,355 -
- Internet services 311 3,771
- Income from provision
of amenities 26,396 12,890
- Donation 13,225 7,072
- Incentives to field force staff 4,389 11,118
- Repair and maintenance 337 234
- Merchandise expense 14,449 12,130
- Others 28,042 47,596
- Long term loan - 2,360
Staff retirement
benefits - Contributions to Provident
Fund 79,857 71,402
- Finance cost on loan - 13,535
- Benefits paid 35,631 57,700
Key management
employees
compensation - Salaries and other
employee benefits 168,966 113,403
- Contributions to Provident
Fund 11,446 8,622
- Directors’ fees and
conveyance 885 -

24.1 The status of outstanding balances with related parties as at December 31, 2021 is
included in the respective notes to the financial statements. These are settled in the
ordinary course of business.
25. DATE OF AUTHORISATION FOR ISSUE
This consolidated condensed interim financial information was approved and authorised
for issue by the Board of Directors of the Company on February 28, 2022.
DECEMBER 2021 47
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2nd Floor, One IBL Centre, Plot# 1, Block 7 & 8,

Dehli Mercantile Muslim Cooperative Housing Society
(DMCHS)Tipu Sultan Road, Off. Shahrah-e-Faisal, Karachi
URL: www.searlecompany.com

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HALF YEARLY REPORT

3 Directors’ Review Report

5 Directors’ Review Report (Urdu)

7 Independent Auditor’s Review Report

8 Unconsolidated Condensed Interim Statement of

9 Unconsolidated Statement of Profit or Loss and

Unconsolidated Condensed Interim Statement of

11 Unconsolidated Condensed Interim Statement of

12 Selected Notes to the Unconsolidated

27 Consolidated Condensed Interim Financial

02 HALF YEARLY REPORT

EARNINGS PER SHARE

For and on behalf of the Board

Karachi: February 28, 2022

04 HALF YEARLY REPORT

‫‪DECEMBER 2021‬‬ ‫‪05‬‬

‫رکایچ‪ :‬رفوری‪2022 ،28‬ء‬

‫‪06‬‬ ‫‪HALF YEARLY REPORT‬‬

Total assets 47,292,263 43,925,523

EQUITY AND LIABILITIES

Issued, subscribed and paid-up capital 11 3,120,526 2,400,405

Trade and other payables 13 4,070,272 3,213,872

Contingencies and commitments 16

Total equity and liabilities 47,292,263 43,925,523

Chief Executive Officer Director Chief Financial Officer

08 HALF YEARLY REPORT

Quarter ended Half year ended

Note --------------------------(Rupees in ‘000)-------------------------

Revenue from contracts with

Cost of sales 18 (1,931,150) (1,929,897) (4,239,046) (3,987,308)

Gross profit 2,039,012 2,154,372 4,393,423 4,165,821

Distribution costs (1,131,263) (1,063,013) (2,237,296) (1,878,669)

Administrative expenses (270,963) (315,740) (542,311) (604,883)

Other expenses (31,076) (67,453) (82,314) (128,598)

Other income 20 700,519 615,902 787,300 799,469

Profit from operations 1,306,229 1,324,068 2,318,802 2,353,140

Finance cost (443,517) (324,920) (821,831) (577,309)

Profit before income tax 862,712 999,148 1,496,971 1,775,831

Income tax expense (58,785) (145,450) (225,975) (330,073)

Profit for the period 803,927 853,698 1,270,996 1,445,758

Other comprehensive income - - - -

Total comprehensive income 803,927 853,698 1,270,996 1,445,758

Chief Executive Officer Director Chief Financial Officer

Capital reserve Revenue reserves

Total comprehensive income for

Transactions with owners

Final dividend for the year ended

Advance received against issue

Issuance cost against rights issue - - - - - (25,060) - (25,060)

Total comprehensive income for

Transactions with owners

Issue of bonus shares 720,121 - (720,121) - - - (720,121) -

Balance as at December 31,

Chief Executive Officer Director Chief Financial Officer

10 HALF YEARLY REPORT

Cash generated from operations 22 806,207 2,597,753

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property, plant and equipment (228,025) (365,258)

Net cash used in investing activities (975,041) (16,187,556)

CASH FLOWS FROM FINANCING ACTIVITIES

Dividend paid (423,754) (157,715)

Net (decrease) / increase in cash and cash equivalents (1,909,457) 901,885